Abstract

Tiebout predicted that differences in service provision and tax rates across regions would lead citizens to migrate to their preferred jurisdiction. This central tenet of the fiscal federalism literature has rarely been explored outside the North American context. This paper delves into this gap in the literature by examining the factors that undermine Tiebout's prediction. It undertakes an international comparative analysis drawing upon recent innovations in the measurement of internal migration that facilitate country comparisons. While some of Tiebout's ideas find limited support, the overall weight of evidence suggests a weak link between internal migration and decentralisation.